With REIT industry growth expected to be robust this year, the names on our list are poised to outperform
SmallCapPower | September 21, 2016: Generally, when looking at the growth of a company if revenue streams are growing it tends to reflects well on the value of the company. For Real Estate Investment Trusts (REITs), when revenue increases it means that the properties that they own are generating more income ultimately leading to greater retained earnings, thus increasing shareholders’ equity. REITs could also be increasing equity by issuing more shares to finance operations or the purchase of new properties, with the latter being more probable when a company has growing cash flows. Increasing the number of income-generating properties would result in greater expected future revenues, which should translate into a more valuable company. Despite growing revenue and equity at a double-digit pace, the REITS on our list have underperformed the market – a situation that could soon change.
Nobel Real Estate Investment Trust (CVE:NEL.UN) – $2.83
Nobel Real Estate Investment Trust (the Trust) is a Canada-based open-ended real estate investment trust (REIT). Its segments include four classifications of investment properties: Industrial, Office, Mixed Use and Retail. The Trust owns approximately 20 industrial, office, retail and mixed-use properties in the geographic markets of Montreal and Gatineau with a leasable space of approximately 763,730 square feet.
- Market Cap: $29.57 (M)
- 1 Year Revenue Growth: 173%
- 1 Year Equity Growth: 53%
- 1 Year Stock Price Change: -29.25%
Slate Retail REIT (TSE:SRT.UN) – $14.16
Slate Retail REIT (the REIT) is a Canada-based unincorporated open-ended real estate investment trust. The REIT focuses on acquiring, owning and leasing a portfolio of diversified revenue-producing commercial real estate properties in the United States with an emphasis on grocery-anchored retail properties. The REIT owns approximately 66 grocery anchored retail commercial properties located in the United States comprising over 7.6 million square feet of gross leasable area (GLA). The REIT’s properties are located in approximately 20 states with a presence in over 20 metropolitan statistical areas (MSAs).
- Market Cap: $455.90 (M)
- 1 Year Revenue Growth: 71%
- 1 Year Equity Growth: 33%
- YTD Price Change: 2%
American Hotel Income Properties REIT LP (TSE:HOT.UN) – $10.94
American Hotel Income Properties REIT LP is a Canada-based limited partnership company that invests in hotel real estate properties primarily in the United States. The principal business of the Company is to issue units and to acquire and hold shares of the American Hotel Income Properties REIT Inc. (U.S. REIT). It operates in two segments: the Rail Hotels and Branded Hotels. Its portfolio of Rail Hotels consists of approximately 50 properties representing approximately 3,720 rooms. All of the properties are operated under its own Oak Tree Inn brand and are designed or converted to fulfill the operating needs of railroad operators.
- Market Cap: $493.24 (M)
- 1 Year Revenue Growth: 55%
- 1 Year Equity Growth: 38%
- YTD Price Change: 0.27%